Budget and public spending not inflationary

Serbian Minister of Finance Mirko Cvetkovic said that the Ministry is doing everything to ensure that macroeconomic stability is maintained as it would push up inflation. Cvetkovic told news agency Tanjug that the budget in the first seven months of the year recorded RSD 47 billion so the budget and public spending are not inflationary. According to him, base inflation which refers to liberally formed prices is very low and will probably remain so until the end of the year.

As for controlled inflation, there will be certain corrections, Cvetkovic said but noted that he is optimistic about maintaining a low inflation rate. He positively assessed the work of the Ministry in the first 100 days of work and divided its activities into three groups – budget-related activities, legislation-related activities and activities focused on changing regulations.

The Minister announced the drafting of a new budget and said that these activities will be finished in accordance with law. According to him, preparations for changing certain draft laws have been completed, including the law on insurance and law on public procurements.

By the end of the year a law on restitution will be adopted as well as a very important set of property-related laws which must be in accordance with the new Constitution, said Cvetkovic highlighting the activities based on increasing efficiency of customs and tax administrations.

The Minister also said that the problem of Agrobanka’s debts has been settled and that several loan agreements have been signed with the World Bank, European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB) for infrastructure projects.